Genworth Appeals LTCI Rate Ruling in Massachusetts

In 2021, Genworth asked for the 161.6% increase. A rate reviewer denied the request.

The hearing panel decision: Rachel Davison, Massachusetts’ acting commissioner of insurance, and the rate hearing officers criticized Genworth’s call for a large enough increase to keep its LTCI policies on track through 2081.

“Genworth proposes to raise rates substantially and for a significant time period using projections that may not be valid in the future because its actual experience over that period may vary considerably,” the hearing officers said. “Genworth further declines to agree to decrease rates in the future if those projections do not reflect actual circumstances, asserting that it is under no legal requirement to do so.”

The hearing officers also analyzed pamphlets that Genworth sent to the LTCI policyholders.

“Only in 2015, three years after the Products were no longer sold in Massachusetts, did Genworth’s Important Information statement advise policyholders that premiums could increase, and more than once during their lifetimes,” the hearing officers said. “Even then, it offered no advice on the potential timing or magnitude of increases.”

Genworth’s view: The Genworth representative said that Massachusetts residents own a large share of the in-force Choice 2 and Choice 2.1 policies.

“Unfortunately, Massachusetts is far behind virtually every state on cumulative rate increase approval percentages,” the representative said. “Rate increases and associated benefit reductions are important to Genworth’s ability to pay future claims.”

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